Word that Apple, Inc. (Nasdaq: AAPL) would be starting a streaming music service has been spreading wildly since last summer, when rumors really began to pick up into the company's iPhone 5 event. News today has the launch of a new 'iRadio' service potentially happening within the year, pending new agreements between Apple and content providers.

TheVerge cites sources in saying the Apple and Universal Music Group might be close to inking a deal and that the agreement might be announced as soon as next week. The launch of a Pandora (NYSE: P)-like radio service will then commence later on this year, sources said.

Under agreements, Apple is unlikely to get the steep discounts it was previously aiming for. Apple initially wanted to pay just 6 cents per 100 songs streamed, versus the 12 cents per 100 that Pandora pays. By comparison, Spotify pays about 35 cents for 100 songs streamed.

(Notably, iRadio appears to have a name and website already, though it isn't clear whether the name is trademarked. Apple might be in negotiations for the name, or the company could simply call the new radio service iTunes Pro, iTunes Premium, or something else no one has thought of yet.)

Both Apple and Pandora are lower in early trading Friday.

Insiders' Blog Rumors

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